Retirement is supposed to be a fun time of life, but the prospect of entering your golden years can also raise some new fears. After all, who doesn’t worry about growing older while trying to finance day-to-day life without a steady paycheck?
Some worries loom larger than others. More than 2,400 retirees recently revealed their biggest retirement worries as part of the 24th Annual Transamerica Retirement Survey from the Transamerica Center for Retirement Studies.
Following are the fears that haunt their visions of retirement. While many are entirely or partially financial, others show that folks are also worried about their physical and mental health in retirement, and even how they will pass the time.
11. Affordable housing
Share of respondents who cite this as a top retirement fear: 13%
In recent years, home prices have exploded, leaving Americans clearly worried about future costs.
Although you cannot control housing prices, you can lower your costs simply by becoming a smarter shopper. Check out the “7 Things Homebuyers Can and Should Haggle On.”
10. Lack of access to adequate, affordable health care
Share of respondents who cite this as a top retirement fear: 14%
As a general rule, the older we get, the more health care services become a part of our lives. The cost of health care seems to soar ever higher, but one way to tame those costs is to open a health savings account.
You need to meet certain requirements to qualify for a health savings account (HSA), but if you are eligible, this type of account offers some of the most impressive tax advantages in the entire IRS code.
9. Feeling isolated and alone
Share of respondents who cite this as a top retirement fear: 17%
Senior life can be lonely. Without the camaraderie of the workplace, some people find themselves alone far more often than they would like. As we have reported, this is especially a problem for single men.
But by and large, retirement is what you make it. So, focus on creating connections with friends and family now to create a happy retirement in the future.
8. Inability to meet my family’s basic financial needs
Share of respondents who cite this as a top retirement fear: 19%
Getting older does not mean the end of worries about taking care of loved ones. However, it can be difficult to provide financially for others when you no longer have a regular income.
Investing wisely during your working years can help you build a large nest egg that will help you support loved ones during retirement.
Building a solid estate plan also allows you to care for your family after you are gone. Money Talks News founder Stacy Johnson has some thoughts on the topic in his podcast “Estate Planning Tips and Tricks.”
7. Finding meaningful ways to spend time
Share of respondents who cite this as a top retirement fear: 20%
Many of us dream of a retirement full of endless rounds of golf or weekend getaways. But having too much time on your hands with nothing to do is not a recipe for happiness.
Volunteering is a great way to add meaning to retirement. But if you plan to volunteer in your golden years, get started now. As we point out in “12 Hard Truths About Retirement“:
“Among people who did not volunteer during their working years, just one-third finally begin volunteering during retirement.”
6. Possible long-term care costs
Share of respondents who cite this as a top retirement fear: 26%
Standard retirement costs cause enough worry, but the price of long-term care sends financial anxiety to a whole new level.
If you are ready to face this sobering part of senior life head-on, check out “Should I Buy Long-Term Care Insurance?”
5. Cognitive decline
Share of respondents who cite this as a top retirement fear: 28%
One of life’s great fears is the worry that, someday, our ability to think clearly may decline. But this is simply another of life’s realities, as much as we wish it weren’t so.
Ultimately, there is no sure way to prevent cognitive decline like dementia or Alzheimer’s disease. But researchers have suggested a handful of things you can do to lower your risk. For more, check out:
- “7 Lifestyle Changes That May Help Prevent Dementia“
- “Eating This Food Every Week May Help Ward off Dementia“
3. Outliving my money (tie)
Share of respondents who cite this as a top retirement fear: 32%
Most of us worry about running out of money before we run out of life, as the old saying goes. So, it’s no surprise to see this fear near the top of the list.
As a group, American workers have saved notoriously little for retirement. And for many of us, time is running short if we hope to build a decent-sized nest egg.
But instead of panicking, check out “6 Ways to Supersize Your Nest Egg After Age 50” and get to work on the practical changes that could quell your fear.
3. Losing my independence (tie)
Share of respondents who cite this as a top retirement fear: 32%
Few things frighten older adults more than the thought of being dependent on others. Physical ailments and diseases like dementia quickly can rob us of our ability to care for ourselves.
This is a reality of retirement for millions, especially those who live a long life. All we can do is prepare — mentally and financially — for the possibility.
2. Declining health that requires long-term care
Share of respondents who cite this as a top retirement fear: 37%
If you’re paying close attention, you’ve noticed a theme on this list. Americans are quite worried about their long-term physical and mental health and what a decline in one — or both — might mean for their retirement years.
1. Social Security reduction or elimination
Share of respondents who cite this as a top retirement fear: 42%
It is a widely reported fact that the Social Security system’s finances are in trouble. All that publicity likely contributes to the level of fear Americans feel about the government-run retirement program’s future.
However much you get from Social Security, you can make the dollars stretch further by avoiding the “12 Things That Can Ding Your Social Security Payments.”
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